Case Study: Chipping Away at Intel Essay

1. What were the different changes at Intel of the first three years of Barrett’s tenure?
Barrett sought to diversify Intel by expanding into arenas outside of chip manufacturing, expanding into Internet related services and into production of information and communication appliances. He poured money into new markets looking for ways to expand his brand, he also sought to make Intel more flexible and attempted to reorganize the company and avoid duplicated responsibilities. Unfortunately, many of his efforts were failing and Intel was in worse shape three years into his tenure than they were when he took over.

Barrett may have felt his risky moves where necessary if he wanted to keep pace with established legends. The dominant issues during his tenure where that of an economic decline and increased competition, he also felt the need to change the corporate culture towards better customer relations as a way to make Intel more consumer driven. It would appear from this case study that some of the strategic moves Barrett made were unnecessary.

6. What pressures for change might Barrett face in the future? How do you arrive at this assessment?
Barrett is going to continue to face competition in the marketplace and if Intel does not show improvement there is likely to be members of the Board of Directors, stockholders and employees questioning his position as CEO, additionally if competitors continue to see Intel’s position slipping, they will increase efforts to pull farther ahead of Intel. Given Barrett’s three-year track record, it is likely that he will continue to try and push into new markets, which will be quite risky in the economic environment Intel currently faces.

7. What advice would you give Barrett for how to cope with these change pressures?
Barrett will need to stay the course and lean on advisors and consultants to aid in his decision making. If he feels that Intel needs to diversify to stay profitable, then he’ll need to make commitments in his reorganizational efforts and investment strategies. Changing direction every few months will not yield the

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